By now, it’s probably no news to anyone that the our economy is going into a recession. While most of us don’t have control over our nation’s economy, we can always watch out for our own. Whether it’s because you’re not getting that year-end bonus or want to build up some savings in case of a lay-off, here are some tips to manage your expenses without greatly compromising your current life-style:
1. Save on movie tickets. Everyone enjoys some movie time once in a while, but nowadays, movie tickets can cost as much as $11 a ticket and if you get snacks as well, a movie trip for two can easily be in the upward of $30. Try renting a movie instead. Companies like Netflix offers convenient services at a great discount. You can get movies arriving in your mailbox every 2- 3 days and unlimited real-time online viewing for a little as $8 a month! Want to watch the newest release in the theater? Most workplace offer discounts by places like www.workingadvantage.com to let you buy movie tickets at $6-$7 a piece. Check with your HR to see if your company offers something like that.
2. Drink tea instead of coffee. Still paying $3 every morning for your coffee? Now would be a great time to consider switching to tea slowly. Green tea is known to provide powerful antioxidants that can keep your body and mind sharper and healthier. Grocery stores usually sell a pack of 20 tea bags for a little as $2-$3. What a great way to stay healthy and save money!
3. Cooking at home. Nowadays you don’t have to be a great chef to prepare something tasty anymore. Many grocery stores have marinated / pre-prepared food that you can simply heat up. It takes minutes to prepare and can save your a bunch! Craving for something that’s not available at the grocery store and have no idea how to make it? No need to even pay for a cooking book anymore! Online recipes are everywhere. Simply google what you want to prepare, you are sure to find something out there.
4. Find a coupon code. If you’ve done online shopping, you are probably aware that most merchants provide a coupon code box at checkout. Just google the merchant’s name + “coupon” to get a list of available coupon codes. For example if you’re shopping at the www.gap.com, simply google “gap coupon”, you are sure to find some percentage off and free shipping deals. It would literally take 2 minutes of your time and you are likely to save at least $5 and usually much more. Not a bad hourly rate at all!
5. Get a water filter. A bottle of water don’t cost much, especially when you buy a whole case. But it does add up, especially considering we are supposed to consume 6+ bottles a day. Try a water a facet water filter or a container filter. It is sure to save you hundreds if you have a big family. Additionally, you’ll also feel great knowing that you are contributing to greener world by not needing all those plastic bottles!
6. Save on energy. Winter heating bill is generally a major household expense item for those of us living in the north. Try installing a timer if you don’t already have one. Those little devices lets you set when you want your heat on or off at what time of the day and on what days, so that your heat doesn’t need to be on while you’re away at work. You won’t notice a thing since it will turn back on automatically before you get home. Also try simple things like opening and closing your door quickly, unplug your electronic devices from the outlet (they use energy even when you’re off), know what you want from the fridge before opening it. Con Edison website offers some great little tips (http://www.coned.com/customercentral/energysavingtips.asp). Here’s an interesting fact: Americans consume about 1/5 of the world’s energy, so there are definitely reasons to save on energy aside from monetary motivations.
7. Refinance your home. The FED decreased primary rates again. Primary interest rate is at its lowest in many years. If you have a mortgage, it is now a great time to check out the refinancing rates at some banks. Be careful to stick with reputable banks and pay attention to any hidden costs. Remember to check out a few banks before you go with any one of them and you can always negotiate.
8. Use a credit card. Using a credit card has many advantages - points and cash back rewards, protection against unauthorized purchases, no need to carry lots of cash. Many credit cards offer up to 5% back on groceries and gas. That equates to about 2 weeks of free gas and grocery every year! One thing to watch out for credit card purchases is don’t forget to pay your bills on time, you might get hit hard with finance charges and late fees otherwise. Consider setting up Autopay for your credit card if you’ve forgotten a few times in the past. One downside of using a credit card is some people tend to spend more when they charge to a card versus paying with cash. If you tend to do that, carrying cash might be a better alternative.
9. Be creative. Thinking about changing your wardrobe because some of your dresses are out of style? Sometimes simply adding a belt or a fur can drastically change the look of your outfit. How about that pair of shoes you’re about to throw out because the sole if worn? Try taking it to a shoe repair shop to get just the sole replaced. Be creative and you will be surprised at what little treasures you might rediscover from your closet or garage.
10. Keep track of your expenses. Learn what’s your biggest expense categories and where you might be able to cut some expenses. Believe it or not, simply made aware of your expenses will likely help you save. If you know you spend $800 a month eating out, having that thought might just yield a home cooked meal one night without you even noticing!